Maple Leaf review

28 February 2005

During 2004, the company posted highest-ever profit and recorded high productivity. This enabled the company to bring the turnaround in operating results and thus stakeholders also benefited by its 15 percent cash dividend. The company emphasises that at present there is no foreign currency loan outstanding on the company’s books. The management has several development projects in the pipeline. Process conversion of white cement project is progressing on schedule and is expected to be completed by June 2005.

The new line will increase Maple Leaf’s white cement capacity from 100 tonnes per day to 600tpd. The capacity of the dry process plant will be enhanced from 3,300tpd to 4000tpd by optimisation of the plant. It has planned an expansion project of grey cement of 6700tpd.

Maple Leaf Cement Factory Ltd was incorporated in the province of Punjab as a public company, limited by share. It was listed on stock exchanges on August 17, 1994. The company is a subsidiary of Kohinoor Textile Mills Ltd which has 50.13 per cent stake in the equity of the company.

Maple Leaf Ltd Cement Factory Limited has a diversified product range and is the only cement company in Pakistan capable of producing grey, white, sulphate-resisting and low-alkali cements. It is the second largest cement producer in the country having a local market share of nine per cent. The company has both dry process and wet process kilns. The dry process kiln was efficiently operated at 103 percent of capacity whereas the wet process plants were operated only to meet peak demand of cement in the country.

During the period under review the company posted considerably improved results. Sales in terms of value was record highest at Rs 4.967bn. The company booked pretax profit amounting to Rs 751.51m after accounting for all charges including depreciation of Rs 334.383m and financial charges of Rs 381.84m against preceding year’s pre-tax loss of Rs 92.916m. Apart from reduced financial costs there were three more contributory factors in the record highest profitability. There was higher utilisation of production capacity, better selling price, and conversion to coal firing.